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Tuesday, September 29, 2015

Volvo Starts Construction on First Factory in the USA

Image courtesy of Volvo.

I won't lie, I like Volvo. I've owned a few Volvos in my time and have seriously considered buying more in the near future. The company places a big emphasis on safety, and having been in two wrecks in Volvos, I can personally attest to how good the Swedes are at delivering on that. There are other things that I loved about my Volvos, but that's another post for another time. Today, I'm writing about a big event for the company: its first factory in the United States.

During the past few decades, automakers have started figuring out that the U.S. isn't a bad place to manufacture cars. For one, it cuts down on shipping costs, considering that this is the second largest car market in the world. In the past several years, the trend has increased dramatically, with Volvo now joining in.

The new manufacturing facility will be located in Ridgeville, South Carolina. Just a few days ago, the company held an official groundbreaking ceremony.

Once the facility is complete, the future Volvo S60 will start rolling off the production line. The cars will be used here domestically as well as shipped to other markets around the world. Total capacity will top out at 100,000 units per year, which could help Volvo reclaim a healthy portion of the U.S. auto market. Back in the day, the Swedish brand was pretty popular here, but under Ford management it fell out of favor with consumers.

Another, yet-to-be-named vehicle will also be assembled in South Carolina. It likely will be either the XC60 or XC90, both of which are popular in the U.S.

It's going to be 2018 when the facility is fully operational. When that happens, expect to see a rise in the number of Volvos on U.S. roads.